Methods of State’s Reaction to Risks of State Finances Management

Abstract

The purpose of the article is the study of methods of state's reaction to risks of state finances management. Methodological basis of the research is presented by the principle of integrity of the past, present, and future, with the help of which the proprietary position for determination of the category of state financial reserves in the basis of F. Knight's concept is presented, according to which measurability of uncertainty is one of prerequisites of formation and use of financial reserves. A key conclusion of the conducted research is substantiation of the fact that, being an economic category, state financial reserves occupy a certain niche in the system of state finances. From these positions, state financial reserves are financial relations as to creation, distribution, and use of the part of national financial resources that are created from value added (GDP) and are aimed for constant process of development of national economy under the conditions of uncertainty and risk. Under the modern conditions, the necessity for clear work of national institutes that coordinate state financial flows grows. Evaluation and distribution of risks in this sphere of management and use of methods of regulation of risks in any moment can be measured quantitatively and determined qualitatively only after their implementation later on.

Hands-on Management: Theoretical and Methodological Approaches and Russian Practice of State and Municipal Management

“…Standards of law act as an analogue of the "autopilot" software and provide the efficiency of the management impact on "subject". And only they must include the generalized and systemized practice of the management process that allows to adequately reacting to the changes of internal and external terms and conditions as well as risks and challenges that occur again (Shlychkov, 2015, p. 146;Irizepova 2015). Theoretically in the process of taking a legitimate management decision "the management subject" must be based exclusively on the current legislation that regulates both the volume of its powers and a list of possible forms and methods of impact on "the management object".…”

“…Scientific definitions were developed, and serious researches of the applied management mechanisms were made. However, in spite of the considerable scope of works made by the scientific community, some aspects of the practice of state and municipal management were not duly interpreted in terms of research and theory (Shekhovtsov et al, 2017;Medvedeva et al, 2016;Irizepova, 2015). They are still in the zone of "white spots" and weakly researched by the contemporary science.…”